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HomeMy WebLinkAboutRESO 9345Resolution No. 9345 Resolution of the Council of the City of Palo Alto Approving A Long Term Power Purchase Agreement with Western Antelope Blue Sky Ranch B LLC for the Purchase of Electricity Generated by Solar Electric Generating Facilities A. On April 12, 2011, the Governor approved Senate Bill ("SB") Xl-2, which requires that all retail sellers of electricity in California, including publicly-owned utilities, serve 33 percent of their retail electricity sales with renewable energy by 2020. B. On April lp, 2012, Council approved an update to the Long-term Electric Acquisition Plan's (LEAP) strategy related to the Renewable Portfolio Standard (RPS). The updated strategy specifies that the City's objective is to reduce the carbon intensity of the electric portfolio by pursuing a minimum level of renewable purchases of at least 33% of retail electricity sales by 2015. C. On March 4, 2013, Council approved a Carbon Neutral Plan, which would enable the City to achieve a carbon neutral electric supply portfolio starting in calendar year 2013. D. The City is interested in purchasing power generated by renewable resources for the benefit of its electric customers. E. By purchasing renewable energy resources, the City will help reduce the production of greenhouse gases, will meet its RPS requirements under SB Xl-2 and LEAP, and will meet its Carbon Neutral Plan goals. F. Western Antelope Blue Sky Ranch B LLC ("Western AntelopeJl) though its parent company, Silverado Power LLC, proposed its project in response to the City's Request for Proposals 147538 ("RFPJI) in September 2012. Its proposal is competitive with other RFP respondent proposals. G. The execution of a power purchase agreement ("PPAJI) with Western Antelope is anticipated to enable the City to meet a five-percent portion of its goal of sourcing 33% of its electric needs from renewable resources and its goal to implement the Carbon Neutral Plan. H. The City is allocated a 100 percent share of the power from the solar project located in Los Angeles County, California, which yields approximately 20 megawatts of plant net output. I. The PPA will allow the City to extend the agreements at the City's sole option for additional five-year terms after the initial thirty year terms. 130502 dm 01552(2) J. The County of Los Angeles will be the lead agency for the purposes of compliance with the requirements of CEQA for Western Antelope. Palo Alto will serve as a responsible agency under CEQA. As a responsible agency, Palo Alto will comply with CEQA by considering the environmental impact report or negative declaration prepared by the lead agency and reaching its own conclusions on whether and how to approve this project, and by making certain findings as required under CEQA. Such findings with regard to environmental impacts of the project will subsequently be presented to Council. The Council of the City of Palo Alto RESOLVES as follows: SECTION 1. The Council approves the power purchase agreement between Western Antelope Blue Sky Ranch B LLC, as seller, and the City of Palo Alto, as buyer. The delivery term ofthe agreement is thirty (30) years, commencing upon the commercial operation date ofthe planned electric generation facility, which date is expected to be no later than December 31, 2016. The City will receive a 100 percent share of the facility's net output. Spending authority under the agreement shall not exceed Ninety Seven Million Dollars ($97,OOO,OOO). SECTION 2. The Council delegates to the City Manager the authority to execute on behalf of the City the agreement with Western Antelope Blue Sky Ranch B LLC and any confirmations executed in connection with the agreement or documents necessary to administer the agreement that are consistent with the established policies of the City Council. II II II II II II II II II II II 130502 dm 01552(2) SECTION 3. With respect to the Council's award of the power purchase agreements referred to in Section 1 above, the Council waives the creditworthiness requirements of Palo Alto Municipal Code section 2.30.340(c), as those requirements may apply to Western Antelope Blue Sky Ranch B LLC. INTRODUCED AND PASSED: June 17, 2013 AYES: BERMAN, BURT, HOLMAN, KLEIN, KNISS, PRICE, SCHARFF, SCHMID, SHEPHERD NOES: ABSENT: ABSTENTIONS: ~ .... /6uk CitvClerk q APPROVED AS TO FORM: APPROVED: Senior Deputy Assistant City torney 130502 dm 01552(2)